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Nintendo surges as Japanese investors rotate away from AI stocks

Nintendo surges as Japanese investors rotate away from AI stocks
Photo by Cláudio Luiz Castro / Unsplash

Nintendo shares jumped 6.8 percent in Tokyo, marking their longest winning streak since March, as Japanese investors rotate out of AI‑linked stocks and into established consumer and IP‑driven companies. Bandai Namco and Konami surged more than 9 percent in the same session, reflecting a broader shift away from overheated AI valuations toward safer, franchise‑based earnings. The move follows weeks of underperformance among Japan’s AI‑capex names like SoftBank, Tokyo Electron, and Renesas, which investors now view as stretched. With Switch 2 offering Nintendo a multi‑year earnings runway, game publishers are becoming a hedge against uncertainty in upcoming AI‑sector earnings.

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